Tomorrow’s launch comes as politicians and consumer groups line up to protest against the high charges levied by the financial services industry on everything from unit trusts to pension funds.

Nutmeg hopes to revolutionise the stuffy world of private banking by offering a portfolio management service for those with as little as £1,000 to invest.

Charges will be capped at one per cent a year, but could fall to 0.3 per cent for those investors who stay loyal.

The London-based service is the brainchild of Nick Hungerford, a former director at stockbroker Brewin Dolphin and wealth manager at Barclays. ‘I want to set up a private banking service for everyone, not just the super-rich,’ he says.

‘The software we have developed allows us to tailor portfolios to individual needs. We want to generate an engaging experience where our customers feel involved.’

The website encourages users to work out their investment risk profile and investment aims. They will be asked to identify goals and rainy-day targets, helped by online tools and easyto- use graphics.

Based on these answers Nutmeg will choose the most suitable mix of investments and create accounts for different objectives – for example, paying for weddings, university fees or property purchases.

Portfolios are set up by a 20-strong back office of investment managers, analysts and technical experts. Investors can phone Nutmeg for support.

Money is spread across a diverse range of equities, bonds and commodities using exchange traded funds. Most ETFs are cheap to purchase and track specific market indices.

All assets are safeguarded by a custodian bank, Pershing Securities, that holds all investors’ money. Portfolios can be viewed online. It is also possible to open and transfer Isas into Nutmeg, as well as top up and withdraw cash at any time.

Hungerford, the chief executive, says: ‘We want the experience for investors to be fun. Investors can get involved as little or as much as they want, but we want everyone to feel they are in control.’